Q4 2021 KULR Technology Group Inc Earnings Call
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Conference recording started.
Conference recording started.
All right, everybody, thanks so much for your patience and waiting on the line. We will now begin the cooler technology group.
Alright, everybody. Thanks, so much for your patience in waiting on the line. We will now begin the cooler technology groups fourth quarter and full year 2021 earnings call for today Thursday March 17th 2022, Let me give you an overview of the phone call.
fourth quarter and full year 2021 earnings call for today, Thursday, March 17, 2022. Let me give you an overview of the phone call. The call is going to consist of opening statements from Michael Mo, CEO , Keith Cochran, President and COO, and Simon Westbrook.
The call is going to consist of opening statements from Michael Moe C. E O. He Cochran, President and C O O and Simon Westbrook C. F O. The company will then answer questions from a group of analysts that have joined us today, but before we get this call.
CFO . The company will then answer questions from a group of analysts that have joined us today. But before we get this call started, I'm going to read the safe harbor statement.
Started I'm going to read the safe Harbor statements. Many of you know these safe Harbor statements can be found at the bottom of every press release as well as on the filings for the company now statements on this call do not constitute an offer to sell or a solicitation of offers to buy.
CFO: Many of you know these safe harbor statements can be found at the bottom of every press release as well as on the filings for the company. Now statements on this call do not constitute an offer to sell or solicitation of offers to buy any securities of any entity.
Any securities of any entity.
CFO: This call may contain certain forward-looking statements based on the company's current expectations, forecasts, and assumptions that involve risk.
This call may contain certain forward looking statements based on the company's current expectations forecasts and assumptions.
That involve risks and uncertainties forward looking statements made on this call are based on the information available to the company as of the date hereof actual results may differ material materially from those stated or implied on this call now if you want to learn more again find the.
CFO: Forward-looking statements made on this call are based on the information available to the company as of the date hereof. Actual results may differ materially from those stated or implied.
CFO: on this call. Now, if you want to learn more, again, find the filings for the company on the SEC as well as at the bottom of the press releases for the company. At this time, I would like to introduce Michael Moe to the call. Michael, the call is yours.
Filings for the company on the FCC as well as at the bottom of the press releases for the company at this time I would like to introduce Michael Moe to the call Michael the call is yours.
Yeah, Hey, Thank you Stuart.
Michael Moe: Yeah, hey, thank you, Stuart. I appreciate all of you for joining us today on our Q4 and full year 2021 earnings press release call.
I appreciate all of you for joining us today on our Q4 and full year 2021 earnings press release call.
Michael Moe: I'm happy to report that 2021 was a pivotal and significant year for Cooler in our growth path. We continued our strong expansion.
I'm happy to report that 2021 was a pivotal and significant year for cooler in our growth path.
We continued our strong expansion in the fourth quarter.
Michael Moe: Revenue increased by 267% year-over-year to $766,000.
Revenue increased by 267% year over year to $766000 for the whole year of 2021, we achieved a total revenue of over $2 $4 million, which is 287% growth over 2020, we.
Michael Moe: For the whole year of 2021, we achieved a total revenue of over $2.4 million, which is 287% growth over 2020.
Michael Moe: We also had approximately $14.9 million of cash on the balance sheet at the end of 2021 compared to approximately $8.9 million of 2020.
We also had approximately $14 $9 million of cash on the balance sheet at the end of 2021 compared to approximately $8 9 million of 2020.
These financial results have put cooler in its strongest financial position in its history and has built a solid foundation to continue our growth in 2022 and beyond.
Michael Moe: These financial results have put Cooler in its strongest financial position in its history and has built a solid foundation to continue our growth in 2022 and beyond.
Michael Moe: During 2021, we made significant investments in our people, our infrastructure and product development. We expanded our executive management team. We grew our
During 2021, we made significant investments in our people our infrastructure and product development.
We expanded our executive management team.
We grew our workforce by over four fold.
Michael Moe: and we moved into a new facility that's three times larger.
We moved into a new facility, that's three times larger.
Additionally, we launched a number of new product development efforts, including cooler tax ak's sell check self screening automation system and a new battery architecture development.
Michael Moe: Additionally, we launched a number of new product development efforts, including cooler tech safe case, cell check, cell screening automation system, and a new battery architecture development. All these product launches and
All of these product launches and developments are progressing well.
Michael Moe: The SafeCase product is gaining significant traction in the marketplace through our partnership with Retrieve Technology.
The same case product is gaining significant traction in the marketplace through our partnership with retreat technologies.
Michael Moe: With the recent acquisition of Battery Solutions, they're the largest end-to-end battery recycler in the United States.
With the recent acquisition of battery solutions there.
The largest end to end battery recycler in the United States.
Michael Moe: We believe SafeCase will drive significant business growth for coolers in 2022, supporting the battery recycling, battery storage, and transportation market.
We believe save case would drive some significant business growth for cooler in 2022, supporting the battery recycling battery storage and transportation markets.
Michael Moe: We're very excited about the growth opportunities in 2022.
We're very excited about the growth opportunities in 2022.
Michael Moe: We see energy storage and battery recycling as the key growth drivers for us in the commercial market segment.
We see energy storage and battery recycling is the key growth drivers for us in the commercial market segments.
Michael Moe: Our partnership with Volta Energy Products positions us to deliver significant growth in the commercial energy storage market.
Our partnership with Volta energy products positions us to deliver significant growth in our commercial energy storage market.
Michael Moe: Continuing that theme, KUDA will support products and services in support of Lockheed Martin advanced energy systems for the DoD customers.
Continuing that theme quarter will support products and services in support of Lockheed Martin Advanced energy systems for the Dod customers.
Michael Moe: In addition, we expect to see customer launches which incorporate Cooler's proprietary PPR design in electric aviation and micro mobility.
In addition, we expect to see customer launches, which incorporate coolers proprietary PPR design in electric aviation and micro mobility.
Michael Moe: In the battery recycling and transportation market, we're expanding our safe case product line to facilitate the storage and transportation of new and used batteries for e-mobility, power tools, micro mobility, such as e-bikes, and consumer electronics.
In the battery recycling and transportation markets, we're expanding our safe case product line to facilitate the storage and transportation of new and used batteries for E mobility power tools micro mobility, such as E bikes and consumer electronics.
Michael Moe: As companies and governments around the world pledge to meet net zero emissions over the next few decades, cooler products and technologies are uniquely positioned to accelerate the adoption of clean and sustainable energy products that propel the migration to a global circular economy.
As companies and governments around the world pledged to meet net zero emissions over the next few decades cuda products and technologies are uniquely position to accelerate the adoption of clean sustainable energy products that propelled the migration to a global circular economy.
In 2022, we expect to see continued growth in our thermal management business with government agencies and D O D customers.
Michael Moe: In 2022, we expect to see continued growth in our thermal management business with government agencies and DoD customers.
Michael Moe: Our long-term strategy has been to co-develop cutting-edge thermal management technologies alongside NASA, the U.S. Department of Energy, the U.S. DoD, and while working in close collaboration with regulatory agencies and international testing organizations.
Our long term strategy has been to co develop cutting edge thermal management technologies alongside NASA. The U S Department of energy the U S. D O D.
Working in close collaboration with regulatory agencies and international testing organizations.
Michael Moe: Our goal is to incorporate these technologies into regulatory roadmaps that can serve multiple mass market applications.
Our goal is to incorporate these technologies into regulatory roadmaps that can serve multiple mass market applications.
Michael Moe: As we deploy these technologies into markets such as energy storage and electric transportation, we look to leverage our IP across multiple verticals and capitalize on multiple revenue streams to accelerate our revenue growth.
As you deploy these technologies into markets, such as energy storage and electric transportation.
We'll look to leverage our IP across multiple verticals and capitalized capitalize on multiple revenue streams to accelerate our revenue growth.
Michael Moe: We expect this flywheel effect to continue and possibly accelerate in 2022.
We expect this flywheel effect to continue and possibly accelerate in 2022.
All in all we are very excited about this year and expect our growth to continue into 2023.
Michael Moe: All in all, we are very excited about this year and expect our growth to continue into 2023.
Next quarter, President COO, Keith Cochran, who will give an update on our business operations.
Michael Moe: Next, Cooler President COO Keith Cochran will give an update on our business operations.
<unk> please.
Keith Cochran: Thanks, Michael, and thanks all for attending today's call. We appreciate that.
Thanks, Michael and thanks, all for attending today's call. We appreciate that.
Keith Cochran: As Michael said, we relocated in October of 2021 to a new facility located at 4863 Shawline Street, San Diego, California.
As Michael said, we relocated in October of 2021 to a new facility located at 48, 63 shoreline Street, San Diego, California.
Keith Cochran: The facility is three times larger than our previous facility with adequate room to support our forecasted personnel growth and new automated battery cell testing capabilities that will launch in Q3 of 22.
The facility is three times larger than our previous facility with adequate room to support our forecasted personnel growth and new automated battery cell testing capabilities that will launch in Q3 of 'twenty two. Additionally.
Keith Cochran: Additionally, we installed independently enclosed areas to support the machine shop, testing lab, battery lab, and FTI flocking lab. We have implemented a 5S standard for the entire facility and will seek ISO 9001 certification in June of 22.
Additionally, we installed independently in closed areas to support the machine shop testing lab battery lab and MTI Flocking lab.
We have implemented a standard for the entire facility and we will seek ISO 9001 certification in June of 'twenty two.
Keith Cochran: With regards to the automated battery cell testing mentioned earlier, KUHLER began working in Q2 of 21 to support the stringent requirements of battery cell testing for NASA and the Department of Defense.
With regards to the automated battery cell testing mentioned earlier cooler began working in Q2 of 'twenty one to support the stringent requirements of battery cell testing for NASA and the department of defense.
Keith Cochran: This platform has been designed to meet the entire specification of NASA Work Instruction 037 battery testing requirements.
This platform has been designed to meet the entire specification of NASA work construction <unk> 37.
Re testing requirements automated.
Keith Cochran: Automated equipment is modular, and the initial processing capability is 500,000 cells annually.
Equipment is modular and the initial processing capability is 500000 cells annually.
Keith Cochran: Based on the current commitments for the equipment, we intend to have the system installed and validated in Q3 of 22. I also mentioned.
Based on the current commitments for the equipment, we intend to have the system installed and validated in Q3 of 'twenty two.
I also mentioned earlier about employee growth.
Keith Cochran: In January of 21, Cooler had 10 full-time employees. As of March 1, 22, the organization has grown to 55 permanent employees with an additional 44 people working on Cooler projects via contract.
In January of 'twenty, one cooler had 10 full time employees as of March 120 to the organization has grown to 55 permanent employees with an additional 44 people working on core projects via contract.
Keith Cochran: Cooler has many open requisitions today to support our growth outlook, primarily in sales, engineering, and technician.
Core has many open requisitions today to support our growth outlook, primarily in sales engineering and technicians.
Keith Cochran: We are pleased that we have been able to hire top talent to continue accelerating the growth of cooler platforms.
We're pleased that we've been able to hire top talent to continue accelerating the growth of cooler platforms.
Keith Cochran: Some of our recent hires include Dr. William Will Walker as Director of Engineering and Peter Hughes as Technical Marketing Engineer.
Some of our recent hires include Dr. William will Walker as director of Engineering, and Peter Hughes as technical marketing engineer.
Battery applications.
Keith Cochran: Both individuals have already had distinguished careers with NASA and now bring their collective knowledge to Cooler to support our renewable energy platform.
Both individuals have already had distinguished careers with NASA and now bring their collective knowledge to cooler to support our renewable energy platforms.
Keith Cochran: Cooler will continue to add additional permanent employees as needed while using outsourced leverage where it's appropriate.
Core will continue to add additional permanent employees as needed while using outsource leverage where it's appropriate.
Keith Cochran: An example of outsourced leverage for poolers in cybersecurity.
An example of outsource leverage for coolers and cyber security.
Keith Cochran: In Q1 of 21, Kuler engaged with management solutions.
In Q1 of 'twenty, one cooler engaged with management solutions to enhance our it infrastructure and improve all aspects of cyber security.
Keith Cochran: to enhance our IT infrastructure and improve all aspects of cybersecurity.
Keith Cochran: As a subcontractor for Department of Defense programs, it is vital that COOLER has state-of-the-art I.T. systems and controls. We believe the best path, based on our
As a subcontractor for department of Defense programs. It is vital that cooler has state of the art it systems and controls.
We believe the best path based on our current scale.
Keith Cochran: is to outsource this activity to a professional IT services organization.
Is the outsource this activity to a professional services organization.
Keith Cochran: The result of this activity has been an estimated improvement of our NIST score of over 140 points.
The result of this activity.
It has been an estimated improvement of our niche score of over 140 points. This critical improvement opens additional opportunities for cooler in support of those D O D programs.
Keith Cochran: This critical improvement opens additional opportunities for cooler in support of those DOD programs.
Next coolers CFO Simon Westbrook, we'll get an update on our financial highlights Simon Yeah.
Keith Cochran: Next, Cooler CFO , Simon Westbrook, will get an update on our financial highlights.
Thanks Keith.
Simon Westbrook: Well, we invested heavily in strengthening our team and building out our infrastructure this year as we prepare for a ramp up in growth of our future business.
We invested heavily in strengthening our team and building out our infrastructure. This year as we prepare for a ramp up in growth of our future business.
Simon Westbrook: This was reflected in our results for both the fourth quarter of 2021 and the whole year ended December 31st, 2021.
This was reflected in our results for both the fourth quarter of 2021 and the whole year ended December 31 2021.
Simon Westbrook: For the quarter, our revenue increased from $208,000 to $766,000 in the comparable quarters.
For the quarter, our revenue increased from 2000 208000 766000 in the comparable quarters.
Simon Westbrook: A gross margin increase from $166,000 to $536,000.
Gross margin increased from $166000 to $536000.
Simon Westbrook: operating expenses increased from eight hundred forty five four point five million which included a one point four million non cash stop compensation charge
Operating expenses increased from 845 to $4 5 million, which included a $1 4 million non cash stock compensation charge.
Simon Westbrook: and net loss increased from $859,000 to $4.1 million.
Our net loss increased from 859000 to $4 1 million.
Simon Westbrook: and our net loss per share went from 0.01 to 0.04 per share.
Net loss per share went from point, a one to point out four per share.
Simon Westbrook: For the whole year ending December 31st, our revenue increased from $624,000 to $2.4 million.
For the whole year ended December 31st our revenue increased from 624000 to $2 4 million.
Simon Westbrook: A gross margin increase from $436,000 to $1.5 million.
Gross margin increased from 436000 to $1 5 million.
Simon Westbrook: Our operating expenses increased from $2.8 million to $12.9 million, which included $4.2 million of non-cash stock compensation expenses.
Our operating expenses increased from 2.8 million to $12 9 million, which included $4 2 million of noncash stock compensation expense.
Simon Westbrook: Our net loss increased from $2.9 to $11.8 million, and our net loss per share increased from $0.03 to $0.15 per share.
Net loss increased from 2.9 to 11.8 million.
Net loss per share increased from <unk> 15 per share.
At the end of the year, we have $14 $9 million in cash compared with $8 9 million at December 31 last year.
Simon Westbrook: At the end of the year, we have $14.9 million in cash compared with $8.9 million at December 31st last year.
Simon Westbrook: which leaves us well positioned to expand operations, support new business and fund ongoing product investment and development in 2022. Thank you.
Which leaves us well positioned to expand operations support new business and fund ongoing product investments in development in 2022.
Thank you.
Okay back to Stuart.
Speaker Change: All right, thank you, Simon. At this time, we are going to welcome to this call, we've got Jake Sikelsky. He's from Alliance Global Partners. He's a managing director and senior research analyst. Jake, you're on the call. You have a couple of questions. Please read off your first question for us.
Alright. Thank you Simon at this time, we are going to welcome to this call.
We've got <unk> Zukowski, He's from Alliance Global partners as a managing director and senior research analyst Jake you're on the call you have a couple of questions. Please read off your first question for us.
Jake Sikelsky: Yeah. Hey, Michael, Keith, and Simon, thanks for taking my questions. Just looking at margins here, we've seen some cost inflation across the board in various industries over the last quarter or two. Can you maybe just walk us through some of the inputs you're most sensitive to from a cost standpoint and maybe touch on any steps that you think you can take to mitigate further margin pressure related to more general cost inflation?
Yeah, Hey, Michael Kaye and Simon Thanks for taking my questions.
Just looking at margins here, we've seen some cost inflation across the board in various industries over the last quarter or two can you maybe just walk us through some of the inputs you are most sensitive to from a cost standpoint, and maybe touch on any steps that you think you can take to mitigate further margin pressure related more general cost inflation.
Yeah, I'll jump on that one.
Yeah.
Okay.
Okay.
Yeah no problem so.
Michael: Yes, no problem. Okay. So obviously, you know, we do have a global supply chain, transportation costs are sensitive for us.
Obviously, we do have a global supply chain transportation costs are sensitive for us.
Michael: Material pricing is also sensitive for us. As such, we've taken some mitigating factors now. We have begun the process of relocating some of our outsource manufacturing down into Mexico. We found very good supply chain partners there, and we're rapidly making the move to bring those partners up to improve our, not only logistics costs, but also the lead time flexibility for our customers in the end. Hope that helps.
Material pricing.
<unk> is also sensitive for us.
As such we've taken some mitigating factors now.
We have begun the process of relocating some of our outsourced manufacturing down into Mexico and found very good supply chain partners there.
And we are rapidly, making the move to bring those partners up to improve our not only our logistics costs, but also the lead time of flexibility for our customers in the end.
Hope that helps.
Yes.
That's helpful.
Speaker Change: And then just looking at SG&A, I mean, you guys have obviously done quite a bit of hiring as you've been in growth mode over the last year or so. Do you expect these levels to remain somewhat constant throughout 2022? It sounds like you guys are obviously focused on growth this year as well, as revenue continues to ramp.
And then just looking at SG&A I mean, you guys have obviously done quite a bit of hiring.
<unk> been growth mode over the last year or so do you expect these levels to remain somewhat constant throughout 2022. It sounds like you guys are obviously focused on growth this year as well.
As revenue continues to ramp.
Speaker Change: You know, Jake, as I mentioned in my prepared comments.
You know Jade as I mentioned in my prepared comments.
Jake Sikelsky: We will definitely continue to grow our organization, but we're going to do that in a combination of internal hires as well as outsource leverage.
We will definitely continue to grow our organization, but we're going to do that in a combination of internal hires as well as outsource leverage and where that makes sense.
Jake Sikelsky: And where that makes sense, you know, we choose to do some of that outsourced leverage. I think this past year for us has been about building the bones of the company. You know, we've added PPF cells and entire HR program and management system in place.
We choose to do some of that outsource leverage. So I think this past year for US has been about building the bones of the company. We've added VP of sales and entire HR program that management system in place.
Jake Sikelsky: brought in a lot of senior engineering talent. All of this has created a really outstanding portfolio of platforms that now are being realized primarily starting in the second half of the year for us. We'll really see the fruits of all of that labor.
<unk> brought in a lot of senior engineering talent. All of this has created a really outstanding portfolio of platforms that now are being realized primarily starting in the second half of the year for us we're really see the fruits of all of that labor. So I think we've done a lot of the heavy lifting as far as the senior infrastructure.
Jake Sikelsky: So I think we've done a lot of the heavy lifting as far as the senior infrastructure personnel wise for the company. And so we'll see probably a little bit of tailing off there, but we'll definitely see growth in sales personnel and in our technicians and also some of our engineering, especially on the automation side.
And our lives for the company.
And so we will see probably a little bit of a tailing off there, but we're definitely see growth in sales personnel and their technicians and also some of our engineering, especially on the automation side.
Speaker Change: All right, so next we have Litchfield. We've got Theodore O'Neill from Litchfield Hills Research. He is a research analyst. Theodore, welcome to the call. You have a couple of questions for the management team.
Alright, and next we have <unk>.
<unk> field, we've got Theodore O'neill from Litchfield Hills Research. She is a research analysts welcome to the call you have a couple of questions for the management team.
Theodore O'Neill: Thanks. My first question, I think you just about covered it on the previous question here, but you've been doing a lot of hiring, and I was wondering, do you expect 2022 expenses to go up as much as they did in 2021? And how do you see your business growth catching up with these costs?
So my first question I think you just about covered it.
The previous question here, but you've been doing a lot of hiring and I was wondering do you expect 2022 expenses to go up as much as they did in 2021 and how do you see your business growth catching up with these cost increases.
Speaker Change: Yeah, so, um, hey, hey, Theo, great to hear from you. So as, um.
Yeah. So.
Hey, Hey deal great to hear from you so as.
Speaker Change: Keith was saying, 2021 was a lot of heavy lifting.
Keith was saying 2021 was a lot of heavy lifting.
Speaker Change: hire a lot of engineering talent, build a foundation. We really make very significant investment in our people, infrastructure.
Higher of a lot of engineering talent and build the foundation, we really make very significant investments in our people infrastructure.
Speaker Change: manufacturing process and product development. There's a very high percentage of year-over-year growth.
Manufacturing process and product development.
Theres, a very high percentage year over year growth or increase on the expense side. We don't at this moment, we don't expect to see percentage growth or.
Speaker Change: or increase on the expense side. We don't, at this moment, we don't expect the same percentage growth or increase on the cost side because a lot of heavy lifting the foundation has been built. And then we expect the revenue growth to continue.
Or increase the cost side, because a lot of heavy lifting the foundation has been built.
And then we expect the revenue growth to continue.
Speaker Change: um in 2022 and 2023 and the sooner versus later the two will catch up and then you know will put us in a better uh or really good financial
In 2022 and 2023.
Sooner versus later, the two will catch up and then you know.
We will put us in a better.
Or really good financial position.
Speaker Change: OK, and on the automated battery testing market, can you give us a look into how you differentiate your products versus current ones being used to test cells currently in production?
Okay and on the automated battery testing market can you give us a look into how you.
Different differentiate your products versus current ones being used to test test cells.
Yeah.
Currently in production.
Speaker Change: Yeah, sure. I can certainly do that. You know, I think there's a lot of automotive manufacturers out there today that do have internal testing for cells. You know, they test a somewhat limited parameter for those cells before they put those into packs for the EB market.
Yes, sure I can certainly do that I think theres a lot of automotive manufacturers out there today.
That do have internal testing for cells.
They test, but somewhat limited <unk>.
Parameter.
Ourselves before they put those into backs for the EV market.
Speaker Change: You know, with that said, the cooler solution and specifications are designed to ensure that every cell has been tested and proven to meet very, very rigid standards of operation for mission critical applications. And I think that's a big differentiator.
That said the cooler solution and specifications are designed to ensure that every sale has been tested and proven to be very very rigid standards of operation for mission critical applications.
And I think that's a big differentiator.
Speaker Change: The screen batteries, though, go into applications whereby they just simply can't fail or the mission becomes at great risk. That's one thing, you know, to have your car break down on the side of the road. It's a whole different problem when you're in flight space or underwaters, for example, in the submersible.
The three battery cells go into applications, whereby they just simply can't sell or the mission becomes a great risk. That's one thing to have your car breakdown on the side of the road, it's a whole different problem when you're in flight space are underwater for example in the submersible.
Speaker Change: Also, the cooler solution is able to be program customized to support the various testing needs of a wide variety of OEMs and government agencies as a service operating versus the in-house solutions used, you know, by automotive manufacturers. So I would say.
Also the cooler solution is able to be program customized to support the various testing needs of a wide variety of Oems and government agencies as a service operating versus NIM health solutions used.
By automotive manufacturers.
So I would say cooler.
Speaker Change: You know, it's kind of a little different as well because we track all of the testing information at a cell by cell level.
It was kind of a little different as well because we track all of the testing information at a cell by cell level.
Speaker Change: So our customers at any time can dial into our system and see the performance of the cells that they've sent through our process. If they ever do have some type of an event, they're able to go back and see exactly what all the parameters were of that particular cell. And then we can bring in the OEM manufacturer of that cell for deeper dive discussions with data.
So our customers at any time to dial into our system and see the performance of the cells through a process. If they ever do you have some type of an event, they're able to go back and see exactly what all the parameters work of that particular, so and then we can bring in the the OEM manufacturer that sell for deeper dive discuss.
With data.
Speaker Change: All right. Well, now we're going to be joined by Principal Equity Analyst at Taglich Brothers. That's John Nobile. He's got a few questions. John , the floor is yours. The call is yours.
Alright, well now we're going to be joined by principal equity analyst at tablets brothers that John <unk>. He's got a few questions. John the floor is yours the call is yours.
Hi, and thanks for taking the questions on this call.
John Nobile: Hi, and thanks for taking the questions in this call. Congratulations on the fourth quarter and year results. Obviously, commercialization looks like it's ramping up nicely. Just a few questions.
Congratulations on the.
<unk> fourth quarter and year results, obviously commercialization looks like it's ramping up nicely.
Just a few questions.
Speaker Change: Michael or whoever could answer this, as far as you know, does Volta still plan to bring between 750 to 1,000 battery storage units to market in 2022, and are they looking still to increase that up to 50,000 units in 2023?
Michael or whoever can answer this as far as you know this vault is still planned to bring between 750 to 1000 battery storage units to market in 2022 and are they looking still to increase that up to 50000 units in 2023.
Yeah.
Speaker Change: Yes, the answer is yes. They're very bullish on the ramp-up plan for 2022 and 2023. As a matter of fact, I think they announced in January ...
Yes, Hi, yes. The answer is yes. They are very bullish on the ramp up plan for 2022.
In 2023.
As a matter of fact, I think they announced in January .
Speaker Change: that they received $100 million in equity financing, which include a couple of strategic investors, National Grid and Sunbell Rental.
<unk> $100 million in equity financing.
Which include.
Couple of our strategic investors Nash.
National grid in Sunbelt rental.
Speaker Change: a
National grid is one of the largest utility companies and so by rental was like $11 billion equipment rental company and now these companies as are shareholders and strategic customers.
We're actually more confident.
In their point of use.
<unk> storage product.
Incorporating the quarter's PPR design the product has the highest <unk> ratings.
In the industry.
Speaker Change: and we believe it will be a leader in the market. So, very, very.
And we believe it will be a leader in the market. So.
I'm very very bullish on that product.
Speaker Change: Great, that's good to hear. And what potential do you believe your acquisition of the IP rights from Centropy could have on future sales of your products and high-power computing applications? Obviously, with Bitcoin and crypto mining, that's a very big area. I just wanted to grasp what type of market this could be and where do you see yourselves with this in, say, a few years from now? Yeah, no, that's a great question.
Great that's good to hear.
What potential do you believe your acquisition of the IP rates from Centrum P could have on future sales of your products and high power computing applications, obviously with bitcoin and crypto mining.
A very big area I, just wanted to grasp what type of market. This could be and where do you see yourselves with this and say a few years from now.
Yeah, No that's a great question.
Speaker Change: Actually, you know, the acquisition like this, this kind of IP acquisition is really kind of a sweet spot for Cooler. We really want to acquire core high performance IPs.
Actually the acquisition like does this kind of IP acquisition is really kind of the sweet spot for cooler.
We really want to acquire core high performance Ip's.
Speaker Change: and to incorporate into our existing platform to kind of enhance the performance.
And to incorporate into our existing platform to kind of enhance the performance.
Speaker Change: across multiple applications, not just on the high-performance power.
Across multiple applications not just on the high performance power computing and the bitcoin mining space, but you are incorporating to our existing aerospace and defense applications as well.
Speaker Change: Computing in the Bitcoin mining space, but even incorporating to
Speaker Change: existing aerospace and defense applications as well. So we see that there is a lot of applications for that.
So we see that there is a lot of applications for that.
Speaker Change: and we expect to actually acquire more IPs along that line to go both horizontal and vertically in the stack. And the goal is really to build the end-to-end, the best of the breed product solutions.
And we expect to actually acquire more ip's along that line to go both horizontal and vertically in the stack is the goal is really to build the end to end best of breed.
Product solution to the market you know.
Speaker Change: You know, so that's, you will see us continue to execute on that strategy.
So that's where you will see us continuing to execute on that strategy.
Speaker Change: Great, and just one final question. Could you talk a little about the market potential you believe is possible from the US Department of Transportation's permit authorizing your cooler tech safe case for battery transport?
Okay great.
Just one final question could you talk a little about the market potential you believe as possible from the U S Department of Transportation's permit authorizing Youre Kuletuk safe case for battery transport.
Speaker Change: Yeah. Hey, Michael, I'll take that one. Yeah. And hi, John . Thank you for your question.
Yeah, Hey, Michael I'll take that one yeah, hi, John Thank you for your question.
Speaker Change: I think I've hit on this a little bit in the past, but let me expand a little further. Right now, the total market for lithium-ion battery recycling in 2021 is about $5 billion.
I think I've hit on this a little bit in the past, but let me expand a little further.
Right now the total market for lithium ion battery recycling spend in 2021 was about $5 billion.
Speaker Change: But it's growing at a 22% kegger. So, you know, we expect that market to grow to $24 billion by 2030 with a lot of government incentives, you know, behind that. And the recycling industry provides a wide range of services, including facilitating the reclaim of damaged, defective, and recall batteries, which is what our safe tech cases provide protection against.
But it is growing at a 22% CAGR so.
We expect that market to grow to 24 billion by 2030 with a lot of government incentives behind that.
And the recycling industry provides a wide range of services, including facilitating the reclaim of damage defective and recall batteries, which is what our safe Tech cases provide protection against so our D. O T special permits make the cooler solution perfect for these types of applications and.
Speaker Change: So our DOT special permits make the cooler solution perfect for these types of applications. And this is where we are seeing really solid gains in our business and outlook.
This is where we are seeing really solid gains in our business and outlook.
Yeah.
Speaker Change: Well, all right, that wraps up our questions for the call today. I do want to point out once again, an entire recording of this call will be archived on the Cooler Technology website. And again, you can reach out to the company directly at that website as well with your investor questions. You've been listening to the Cooler Technology Group fourth quarter and full year 2021 earnings call. Thank you so much for joining us. Thank you to the management team.
Well all right that wraps up our questions for the call today I do want to point out once again, an entire recording of this call will be archived on the cooler technology website and again you can reach out to the company directly at that website as well with your investor questions, you've been listening to the cooler technology group.
Fourth quarter and full year 2021 earnings call. Thank you so much for joining us. Thank you to the management team, Keith Michael and Simon as well as our analysts that joined US here today and most of all thank you to the investors and shareholders for your belief and support in our company.
Speaker Change: Keith, Michael, and Simon, as well as our analysts that joined us here today, and most of all, thank you to the investors and shareholders for your belief and support in our company. Have a wonderful rest of your week.
Have a wonderful rest of your week.